Express Inc., a fashion retailer, filed for Chapter 11 bankruptcy Monday in a Delaware court and announced its plans to close over 100 stores, Reuters reported.
The business was once a rival to other major fashion retailers like Zara and H&M, ABC News reported. (RELATED: Major Retailer Files For Bankruptcy As Americans Cut Back On Creature Comforts)
Chapter 11 bankruptcy means that the business will be undergoing serious restructuring, according to the U.S. Courts. “Usually, the debtor remains ‘in possession,’ has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money,” the government website noted.
Express Inc. has named Mark Still as its new CEO, Reuters reported. Still was previously the interim CFO of Express Inc. since Nov. 2023, the outlet noted. Express listed its assets and liabilities in the range of $1 billion to $10 billion, according to the bankruptcy filing, Reuters reported.
Fashion retailer Express Inc has filed for Chapter 11 bankruptcy and intends to close more than 100 stores https://t.co/zoWxNoHiLx
— philip lewis (@Phil_Lewis_) April 22, 2024
Express also announced its plan to close 95 of its retail stores along with all 10 of its UpWest stores, ABC News reported. Express is a parent company of UpWest, the outlet noted. “We continue to make meaningful progress refining our product assortments, driving demand, connecting with customers and strengthening our operations,” Stewart Glendinning, Chief Executive Officer of Express, said in a press release.
“Express has a strong portfolio of brands and a premier omnichannel platform. Our top priority remains providing our customers with the contemporary styles and value they expect from us. We thank our associates for their continued hard work and commitment, and we appreciate the ongoing support of our vendors, suppliers and business partners,” Glendinning added in the press release.
Express claimed that they filed for Chapter 11 protections in order “[t]o facilitate the sale process” of the company’s “retail stores and operations,” the press release read. The company in its press statement observed that it had “received a commitment for $35 million in new financing from certain of its existing lenders” and had “received $49 million in cash from the Internal Revenue Service related to the CARES Act” on April 15.